Eldridge Pope agrees offer from Michael Cannon
Eldridge Pope has agreed a 171p-a-share offer for the business from entrepreneur Michael Cannon (pictured). The board of the Dorset-based pub operator is recommending the cash offer to shareholders. The bid, made through a subsidiary of Mr Cannon's company SDA, values the business at about £42.3m.
Mr Cannon, veteran of a series of pub deals including the sale of his Magic Pub Company business to Greene King, has already built up a stake of around 22 per cent in Eldridge Pope.
A formal bid has been rumoured for some time, and last week the pub operator confirmed that talks had started.
The offer is a 15.8 per cent premium to the average share price over the past four months. Previous potential takeovers have stumbled over the price expected by the founding Pope family for its stake.
However, with the 150-pub business continuing to find the market tough going, Mr Cannon clearly believes the offer has been pitched at a price that will win shareholders over.
Eldridge Pope said that there had been "no material change" in is sales trend since May, when it reported like-for-like sales in its managed pubs down 5.3 per cent, and said profits were likley to be below forecasts.
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Michael Cannon plans Eldridge Pope takeover (10 September 2004)
